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Reinvestment Rate

The annual funding level for future renewal of the assets within a facility which is expressed as percentage of building replacement cost.  


Reinvestment Rate by Sector

Listed below are each of the primary sectors:


Reinvestment Rate by Facility Age

The Age-Reinvestment Matrix provides the correlation between age of a facility and the reinvestment rate.
An example of an age-reinvestment matrix for a class of buildings.
Fig. An example of an age-reinvestment matrix for a class of buildings, with the trend line (black dashes) providing the reinvestment rate over time.


Four types of funding trajectories
Fig. Four types of capital funding trajectories - two of which are "lumpy" and two are "linear" in nature.

See also:
Models See also: Reinvestment Models Formulas
Funding trajectories and inflection points resulting from three alternative funding methods - "Adequate Reserve", "Capital Load" and "Non-Termed.
Fig. Lifecycle funding trajectories and inflection points resulting from three alternative funding methods - "Adequate Reserve", "Capital Load" and "Non-Termed.

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